Nigeria’s Economic Crisis: Obasanjo Slams Leadership Failure at Yale Forum

Former Nigerian President Olusegun Obasanjo has sharply criticized the state of Nigeria’s economy and the failure of its leadership to take responsibility for the nation’s declining situation.

In a keynote address delivered at the Chinua Achebe Leadership Forum at Yale University on Saturday, Obasanjo outlined the severity of Nigeria’s ongoing crisis, declaring that the nation’s economic and social woes are compounded by a lack of accountability from those in power. The speech, titled “Leadership Failure and State Capture in Nigeria,” painted a grim picture of the country’s future if current leadership trends continue.

“As the world can see, Nigeria’s situation is bad,” Obasanjo said, pointing to the widespread issues of corruption, insecurity, and underdevelopment that have plagued the country for years. Drawing a stark contrast to Singapore’s efficient governance, which has invested heavily in healthcare, education, and social welfare, Obasanjo argued that Nigeria’s leaders have failed to respond effectively to the evolving needs of its citizens.

Obasanjo’s remarks were directed at the current and past leadership, which he described as having “failed” in its duties, exacerbating Nigeria’s descent into dysfunction.

He said, “Nigeria’s situation, as we can see and understand, is bad. The more the immorality and corruption of a nation, the more the nation sinks into chaos, insecurity, conflict, discord, division, disunity, depression, youth restiveness, confusion, violence, and underdevelopment.

“That’s the situation mostly in Nigeria in the reign of Baba-go-slow and Emilokan. The failing state status of Nigeria is confirmed and glaringly indicated and manifested for every honest person to see through the consequences of the level of our pervasive corruption, mediocrity, immorality, misconduct, mismanagement, perversion, injustice, incompetence and all other forms of iniquity. But yes, there is hope.”

The former President, while quoting from a short, classic treatise published in 1983 called, “The Trouble with Nigeria” by Chinua Achebe, said, “The trouble with Nigeria is simply and squarely a failure of leadership.

“The Nigerian problem is the unwillingness or inability of its leaders to rise to the responsibility, to the challenge of personal example which are the hallmarks of true leadership.”

According to him, two prominent US intellectuals, Robert Rotberg and John Campbell, had once raised the alarm about the failing status of Nigeria and its inevitable effects on the African continent given the country’s size, economic viability, and population, among others.

He described state capture “as one of the most pervasive forms of corruption, a situation where powerful individuals, institutions, companies, or groups within or outside a country use corruption to shape a nation’s policies, legal environment, and economy, to benefit their own private interests.

“State capture is not always overt and obvious. It can also arise from the more subtle close alignment of interests between specific business and political elites through family ties, friendships, and the intertwined ownership of economic assets.

“What is happening in Nigeria – right before our eyes – is state capture: The purchase of National assets by political elites – and their family members – at bargain prices, the allocation of national resources – minerals, land, and even human resources – to local, regional, and international actors. It must be prohibited and prevented through local and international laws.

“Public institutions such as the legislature, the executive, the judiciary, and regulatory agencies both at the federal and local levels are subject to capture.

“As such, state capture can broadly be understood as the disproportionate and unregulated influence of interest groups or decision-making processes where special interest groups manage to bend state laws, policies, and regulations.

“They do so through practices such as illicit contributions paid by private interests to political parties, and for election campaigns, vote-buying, buying of presidential decrees or court decisions, as well as through illegitimate lobbying and revolving door appointments.

“The main risk of state capture is that decisions no longer take into consideration the public interest but instead favour a specific special interest group or individual.

“Laws, policies, and regulations are designed to benefit a specific interest group, oftentimes to the detriment of smaller firms and groups and society in general.

“State capture can seriously affect economic development, regulatory quality, the provision of public services, quality of education and health services, infrastructure decisions, and even the environment and public health.”